2009 Annual Report - CRH

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Notes on Financial Statements 1. Segment Information CRH is a diversified international building materials group which manufactures and distributes a range of building materials products from the fundamentals of heavy materials and elements to construct the frame, through value-added products that complete the building envelope, to distribution channels which service construction fit-out and renewal. Based on these key strategic drivers across the value chain, the Group is organised into six business segments comprising Europe Materials (including activities in China and India), Europe Products, Europe Distribution, Americas Materials, Americas Products and Americas Distribution. No operating segments have been aggregated to form these segments. Materials businesses are predominantly engaged in the production and sale of a range of primary materials including cement, aggregates, readymixed concrete, asphalt/bitumen and agricultural and/or chemical lime. Products businesses are predominantly engaged in the production and sale of architectural and structural concrete products, clay products, insulation products, fabricated and tempered glass products, construction accessories and the provision of a wide range of inter-related products and services to the construction sector. Distribution businesses encompass builders merchanting activities and Do-It-Yourself (DIY) stores engaged in the marketing and sale of supplies to the construction sector and to the general public. The principal factors employed in the identification of the six segments reflected in this note include the Group’s organisational structure, the nature of the reporting lines to the Chief Operating Decision-Maker (as defined in IFRS 8 Operating Segments), the structure of internal reporting documentation such as management accounts and budgets, and the degree of homogeneity of products, services and geographical areas within each of the segments from which revenue is derived. The Chief Operating Decision-Maker monitors the operating results of segments separately in order to allocate resources between segments and to assess performance. Segment performance is predominantly evaluated based on operating profit. As performance is also evaluated using operating profit before depreciation and amortisation (EBITDA), supplemental information based on EBITDA is also provided below. Given that net finance costs and income tax are managed on a centralised basis, these items are not allocated between operating segments for the purposes of the information presented to the Chief Operating Decision-Maker and are accordingly omitted from the detailed segmental analysis below. Although IFRS 8 is being applied for the first time, there have been no changes to the basis of segmentation or to the basis of measurement of operating profit in compiling the consolidated financial statements in respect of the year ended 31st December 2009. In addition, there are no asymmetrical allocations to reporting segments which would require disclosure. A. Operating segments disclosures - Consolidated Income Statement data 72 CRH Continuing operations - year ended 31st December Materials Products Distribution Total Group 2009 2008 2009 2008 2009 2008 2009 2008 €m €m €m €m €m €m €m €m Segment revenue Europe 2,749 3,696 3,002 3,686 3,633 3,812 9,384 11,194 Americas 4,280 5,007 2,536 3,243 1,173 1,443 7,989 9,693 7,029 8,703 5,538 6,929 4,806 5,255 17,373 20,887 Group operating profit before depreciation and amortisation (EBITDA) Europe 434 806 283 392 204 258 921 1,456 Americas 670 724 173 369 39 116 882 1,209 1,104 1,530 456 761 243 374 1,803 2,665 Depreciation and amortisation (including asset impairment charges) Europe 177 175 167 168 67 64 411 407 Americas 263 262 150 131 24 24 437 417 440 437 317 299 91 88 848 824 Group operating profit (EBIT) Europe 257 631 116 224 137 194 510 1,049 Americas 407 462 23 238 15 92 445 792 664 1,093 139 462 152 286 955 1,841 Profit on disposal of non-current assets (i) 26 69 Finance costs (net) (297) (343) Group share of associates' profit after tax (ii) 48 61 Profit before tax 732 1,628
1. Segment Information continued A. Operating segments disclosures - Consolidated Income Statement data continued Segment revenue includes €3,252 million (2008: €3,593 million) in respect of revenue applicable to construction contracts. Revenue derived through the supply of services and intersegment revenue is not material to the Group. The transfer pricing policy implemented by the Group between operating segments and across its constituent entities is described in greater detail in note 33. In addition, due to the nature of building materials, which exhibit a low value-to-weight ratio, the Group’s revenue streams include a low level of cross-border transactions. Asset impairment charges of €41 million (2008: €14 million) relate to Europe Materials €9 million (2008: €nil million), Europe Products €19 million (2008: €12 million) and Americas Products €13 million (2008: €2 million). Continuing operations - year ended 31st December Materials Products Distribution Total Group 2009 2008 2009 2008 2009 2008 2009 2008 €m €m €m €m €m €m €m €m (i) Profit on disposal of non-current assets Europe 4 16 1 15 5 15 10 46 Americas 17 20 (1) 2 - 1 16 23 21 36 - 17 5 16 26 69 (ii) Group share of associates' profit after tax Europe 39 45 1 5 7 11 47 61 Americas 1 - - - - - 1 - 40 45 1 5 7 11 48 61 B. Operating segments disclosures - Consolidated Balance Sheet Continuing operations - year ended 31st December Materials Products Distribution Total Group 2009 2008 2009 2008 2009 2008 2009 2008 €m €m €m €m €m €m €m €m Total assets Europe 4,224 4,319 2,879 3,191 1,991 2,174 9,094 9,684 Americas 5,166 5,481 2,221 2,662 611 738 7,998 8,881 9,390 9,800 5,100 5,853 2,602 2,912 17,092 18,565 Reconciliation to total assets as reported in the Consolidated Balance Sheet Investments accounted for using the equity method 962 743 Other financial assets 128 127 Derivative financial instruments (current and non-current) 249 426 Income tax assets (current and deferred) 414 333 Liquid investments 66 128 Cash and cash equivalents 1,372 799 Total assets as reported in the Consolidated Balance Sheet 20,283 21,121 Total liabilities Europe 954 966 802 759 457 465 2,213 2,190 Americas 722 896 354 569 151 204 1,227 1,669 1,676 1,862 1,156 1,328 608 669 3,440 3,859 Reconciliation to total liabilities as reported in the Consolidated Balance Sheet Interest-bearing loans and borrowings (current and non-current) 5,324 7,298 Derivative financial instruments (current and non-current) 86 146 Income tax liabilities (current and deferred) 1,711 1,647 Capital grants 12 14 Total liabilities as reported in the Consolidated Balance Sheet 10,573 12,964 CRH 73
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Annual Report 2009 PERFORMANCE AND
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Contents inside cover CRH at a Glan
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Key Financial Figures 2009 €m 2,8
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Americas Materials - 37% of Group T
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CRH is an international group with
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. . Emerging Regions - Strategy in
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. . . . . . Diverse Portfolio - Str
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CRH is committed to ethically and r
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as well as adding to our presence i
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Chief Executive’s Review Overview
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Responding to the evolving market e
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Group Operations The global economi
Page 25 and 26: Europe Materials Europe Materials e
Page 27 and 28: operating adjustments were implemen
Page 29 and 30: Europe Products & Distribution Thro
Page 31 and 32: Building Envelope Products These op
Page 33 and 34: Mark Towe Chief Executive Officer T
Page 35 and 36: asphalt plants and paving operation
Page 37 and 38: Mark Towe Chief Executive Officer T
Page 39 and 40: Glass The Glass group is the market
Page 41 and 42: offset by the decline in the averag
Page 43 and 44: which mature after more than one ye
Page 45 and 46: W.I. O’Mahony* BE, BL, MBA, FIEI
Page 47 and 48: issues confronting the Group; that
Page 49 and 50: # assists management, at their requ
Page 51 and 52: accounting period and up to the dat
Page 53 and 54: # CRH’s business may be affected
Page 55 and 56: Report on Directors’ Remuneration
Page 57 and 58: Directors’ Remuneration Notes Exe
Page 59 and 60: Pension entitlements - defined bene
Page 61 and 62: Directors’ interests The Company
Page 63 and 64: Directors’ Interests in Share Cap
Page 65 and 66: Independent Auditors’ Report to t
Page 67 and 68: Consolidated Balance Sheet as at 31
Page 69 and 70: Consolidated Statement of Cash Flow
Page 71 and 72: the Group and one or more other ven
Page 73 and 74: indicate that the carrying values m
Page 75: floating rates (using interest rate
Page 79 and 80: 2. Proportionate Consolidation of J
Page 81 and 82: 5. Directors’ Emoluments and Inte
Page 83 and 84: 7. Share-based Payment Expense cont
Page 85 and 86: 8. Finance Costs and Finance Revenu
Page 87 and 88: 10. Income Tax Expense continued Fa
Page 89 and 90: 13. Property, Plant and Equipment L
Page 91 and 92: 14. Intangible Assets continued Goo
Page 93 and 94: 17. Inventories 2009 2008 €m €m
Page 95 and 96: 21. Capital and Financial Risk Mana
Page 97 and 98: 21. Capital and Financial Risk Mana
Page 99 and 100: 23. Interest-bearing Loans and Borr
Page 101 and 102: 24. Derivative Financial Instrument
Page 103 and 104: 25. Analysis of Net Debt Components
Page 105 and 106: 25. Analysis of Net Debt continued
Page 107 and 108: 27. Deferred Income Tax The deducti
Page 109 and 110: 28. Retirement Benefit Obligations
Page 111 and 112: 28. Retirement Benefit Obligations
Page 113 and 114: 29. Capital Grants 2009 2008 €m
Page 115 and 116: 30. Share Capital and Reserves cont
Page 117 and 118: 32. Acquisition of Subsidiaries and
Page 119 and 120: 33. Related Party Transactions The
Page 121 and 122: Notes to the Company Balance Sheet
Page 123 and 124: 7. Movement in Shareholders’ Fund
Page 125 and 126: CREST Transfer of the Company’s s
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John Parson President & Chief Opera
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Incorporated and operating in % hel
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Incorporated and operating in % hel
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Principal Joint Venture Undertaking
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Group Financial Summary (Figures pr
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G Geographic leadership positions 2
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Notes
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2009 Annual Report - CRH

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